(Editor’s Note: “FRONA” is an acronym for the Free Republic of North America, that mythical new nation borne of secession and created in the fertile gray matter of your Editor. This is an update of an article that ran at LewRockwell.com in October 2009.)

The US Constitution is a dead document. It has been dead nearly from its inception. It is neither contract nor treaty, either of which would give it the force of law. It does not, and cannot bind any two persons to each other, nor can it bind any person to the rogue government called “The United States of America” that is the occupying force in Washington DC.

In this article, I will prove that the Constitution is without authority and that the subject of secession related to the Constitution is entirely irrelevant, and that any states need not concern themselves with the constitutionality of secession.

When you are able to wrap your mind around this truth, it may cause you some consternation. This means that all of the things that you learned about the US Constitution in elementary school, high school government class, college and any information you’ve learned since you became an adult…IS WRONG. If you went to law school and took Constitutional Law classes, they lied to you.

Please don’t misunderstand. I’m not saying that all of the debates that are made about the details of the Constitution are in error. We can all spend our days arguing about the articles and clauses and their meanings. But if the US Constitution is dead, and cannot bind anyone to it, arguing about the merits of constitutionality of any government action is simply an exercise in re-arranging the deck chairs on the Titanic.

A constitution, or any document organizing a government, must have authority and validity. But the US Constitution has no inherent authority or validity and has never had either. If we can learn what the US Constitution is and what it is not, we can understand the flaws in the old constitution and then craft a new constitution for any seceding state with authority and validity.

I believe that one of the major reasons that Washington is able to operate as it does, outside the strictures of the Constitution, is because those persons in power know that the Constitution is not legally enforceable. Absent a restraining legal document coupled with principals that have the power to enforce the terms of the document, the DC criminals do exactly what they wish and what they can get away with.

The US Constitution has the following words in its Preamble, showing the intent of the Framers:

We, the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the united States of America.

The Founder’s sentiments seek to secure blessings to themselves and their posterity, meaning future generation of citizens. But a loose agreement cannot by law or reason bind any future person to its details. Contracts cannot obligate persons who will live in the future, either. They can only obligate persons who are living presently and who sign and receive the contract.

Even though the old constitution wishes to bestow blessings and liberty on their posterity, it has no power whatsoever to achieve this goal. Further, it never showed any intention toward future generations other than to offer useful recommendations to their posterity toward the blessings of liberty. If they were in some way able to bind future generations to the Constitution, they would not have bestowed liberty but slavery upon their posterity, since their children would be bound to it from birth, like it or not.

So what exactly is this Constitution?

I think it could only be called a “loose agreement” between certain people at the time that it was written and ratified. It is not a treaty ratified between sovereign states, which would have the weight of law. It cannot be considered a legal contract, since legal contracts have characteristics that the old constitution does not have.

It was ratified by votes in the several states. But ratification in any form didn’t turn it into a legal document with enforceability and authority.

The US Constitution is not a legal contract. The Constitution never bound any two or more parties in a legal way, nor did it ever purport to bind anyone. A timeless principle in contract law is that the contract is not valid until the contract is signed by all parties and delivered to the parties, or the representative of any signatory party. Any party may refuse to sign or deliver a written instrument and thus invalidate the contract. The US Constitution was not signed by anyone or anyone’s legal representative. It was not delivered to anyone or their representative. No one in the USA, either alive or dead, has ever signed the Constitution as a legal contract between parties. So how could it be a legal document with binding authority or validity?

Contracts are also voluntary. The parties come together for a purpose, but are free to dissolve the contract based upon the terms of the contract. Even if they leave contrary to the contract terms, there may be consequences, but they can still leave.

Abraham Lincoln’s position was that, once in the Union, no state can ever leave. And if the US Constitution was an enforceable contract between parties, his position would have been rejected instantly and laughed out of any court in the land. But in light of the unenforceable nature of the Constitution, Lincoln was free to do what he pleased as it related to the Confederate States of America and war. But the Confederate states were also right to secede from a Union that could not bind them. Constitutionality was irrelevant then, just as it is today.

The Constitution is not a perpetual corporation. The perpetuity of a corporation would require that new members voluntarily assent to its laws and by-laws as old members die off. New members must accept in writing because without their legal signatures, they would not be members and could not vote on corporate issues. There is no evidence whatsoever that the Framers intended the US Constitution to be a corporation’s organizational document…at least not a corporation in the strictest sense.

“The United States of America” is the name given in the US Constitution to the organization that the states created. Compare the work of the Founders to a group of thirteen property owners that need a management company to manage their properties. So, they created a management company and gave it specific tasks and responsibilities. The property owners retained to themselves all other powers not specifically delegated to the management company. They also did not transfer ownership of their properties to the manager. The owners remained the sovereign principals, controlling the manager. But there is NOT ONE WORD in the US Constitution that purports to create a new nation. Look for yourself.

So we can see that the Constitution is not a contract. It binds no one, and never did bind any persons. We see that all those who pretend to operate under its perceived authority act without any legal and legitimate authority.

But we voted and elected these Representatives and Senators. They are our duly elected officials, aren’t they?

Are our elected representatives our personal agents with legal authority to bind each of us individually and collectively? No they are not. In order for you to have a legal representative, you must sign your name to a document that gives the representative the power to act in your behalf. This document is commonly known as a “power of attorney.” You must also deliver the document to the agent.

People regularly sign a “power of attorney” for health care decisions and other legal matters. But what would you do if a stranger went to your doctor and usurped your wishes for your medical treatment, stating that he had your power of attorney? Any reasonable person would require the stranger to produce a written document bearing your signature prior to any changes of treatment. How much more should there be a written power of attorney for the DC stranger who plunders your income and steals your liberty?

Did you ever sign a power of attorney so that any elected officeholder could make binding decisions on your behalf? Did you authorize any person to obligate you to laws, regulations or the payment of taxes to any governmental body? I know that I have not done so. Neither have you.

And the secret ballot makes the concept of any elected representative acting as your agent even more ridiculous. How could secret voters hire an agent? How could secret voters enter into a power of attorney agreement?

So we see that those persons acting as our elected representatives are acting unlawfully, and that we have both the right and duty to treat them as usurpers and frauds.

Then upon what authority does the Federal Government operate? Who gave them the authority to enact laws, tax, confiscate men’s property and kill other men who resist their machinations?

You could say that voters select their representatives by secret ballot, and so bestow authority upon them. But in matter of law and reason, this is not true. It would not be upheld in a court of common law. If you and three of your friends voted in favor of a proposal in which a fourth friend would take it upon himself to deprive me of my property or my life, he would be a robber and/or a murderer. If he presented himself at my door to do his work, he would be unable to produce any legal authority to complete his task. Absent legal authority, I should treat him as a robber and murderer and resist his efforts even unto deadly force.

In a courtroom, a judge would ask to see your representative’s written authority to act in your behalf. You would be unable to produce such written authority.

So voting is neither a contract nor a power of attorney. And secret ballots should never be considered legally binding, since no signed contract between parties ever existed. Further, if voters authorize another person to act as their agent, they should do so in an open manner so to accept responsibility for the agent’s acts. That’s called “liability,” and that’s what happens out here in “the real world.” But the US Constitution, in Article I, Sec. 6, says that “for any speech or debate (or vote) in either house, they (Senators or Representatives) shall not be questioned in any other place.” So your agent cannot be held responsible for any laws they make…and neither can you. So, if no one is responsible, who is responsible?

NO ONE.

And let’s return to the subject of legal authority. The Constitution has no legal authority to bind any two or more persons. If it did, you would possess a copy upon which you would find your own signature and at least one other person’s signature. But that document does not exist in any form and has not existed in over 235 years. So, absent that authority, voting is only theater. It is an exercise that makes the citizen feel that he is participating in a legitimate government.

The Federal Government in Washington has been illegitimate from its origin. There is no enforceable law or principal possessing superior force to restrain it from any act. It was only the morality and ethics of the earliest founders that restrained them from tyranny. Unfortunately for Americans, that morality and ethical restraint are a quaint memory.

OK. Convinced that the old Constitution is a cruel joke? Then, how can the new constitution be crafted to guarantee legitimacy and legality? If the framers of the new constitution write one like the old one, it will suffer the same illegitimacy issues as the old one.

Here are suggestions on how to write a new Constitution for a seceding State that wants to become a new sovereign nation.

The New FRONA Corporate Model of Governance

Form the new nation in the style of a corporation. Let’s call it The Free Republic of North America, or for short, “FRONA.” The Constitution, or Charter, can be its laws and by-laws. Each person will be given the option to subscribe to FRONA and become a citizen. That person would have to be presented with a copy of the Charter. Each person would have the choice to accept the Charter in writing. Once accepted, each citizen would be, in essence, a shareholder in the corporation, since a person could not be a citizen/shareholder without signed consent. Each citizen would pay one once of .999 purity silver and would be issued one share of common stock with one vote. No citizen could buy or own more than one share of common stock. That would also mean that those rejecting the Charter could not be citizens of FRONA. Minors could not be citizens until they were of legal age to enter into a contract, usually eighteen years of age. So, in FRONA, there would be two groups of people: citizens and residents. Residents would obviously not have the same legal rights as citizens.

FRONA might also issue preferred stock. The shareholder/citizens could actually invest their own money in preferred stock. This would provide the new nation with additional capital. Shareholders holding preferred stock might receive dividends if FRONA makes a profit.

FRONA would also be able to issue debentures and corporate bonds to raise capital.

As the corporate structure would be a closely-held private corporation, the charter could specify that the stock could not be resold to non-citizens. Only FRONA would be eligible to buy back the stock to be reissued to new citizen/investors.

The founders of FRONA would have the right to present the offer of citizenship to anyone anywhere on the planet. They could cherry pick the world for the best and brightest talent! It would be a powerful component of immigration policy.

Voting could be done by proxies (power of attorney), and the citizen could designate an elected representative as his proxy in writing. Or he could vote himself on any issue. This creates a hybrid between direct democracy and representative democracy.

Think this is unworkable? The largest corporations on the planet have been running this way for hundreds of years. GM (pre-nationization), Exxon, Standard Oil, all of the Dow Jones top 30…they all work this way just fine. Many have millions of shareholders, just like FRONA would have. In fact, Sweden’s Stora Kopparberg was incorporated by King Magnus Eriksson in 1347 and still operates today.

FRONA Monetary Policy

The new Charter must have an article about monetary policy. This article will authorize the private minting of gold and silver coins, and will mandate that coins only show their purity and weight, not any monetary value.

Banking, Entity Structure and Privacy

The new Charter must contain an article about banking. Specifically, Fractional Reserve Banking must be prohibited. In addition, strict protections of privacy must be enacted, shielding citizens from the tax laws of other nations.

The new Charter must contain laws that prevent tax treaties with other nations, thereby protecting FRONA citizens from predatory taxation by other jurisdictions. Statutes must also protect the privacy of business entities such as corporations.

Taxation

The sole method of taxation that is at once most restrictive to government yet least confiscatory to individuals is the sales tax. FRONA should establish the sales tax as the sole source of government revenue.

The Militia

FRONA must organize, train and equip a citizen militia, comprised of able-bodied men and women between the ages of 18 and 55. This will be an entirely voluntary militia, since requiring conscription is tantamount to involuntary servitude, and does not protect individual liberty. As the well-regulated militia is necessary to the security of a free State, the natural right of citizens to keep and bear arms shall not be infringed. Following the Swiss model of militia organization would be a good idea.

If the new FRONA Charter only had those articles about monetary policy, banking, taxation and militia, that would be sufficient to form a core government and bring FRONA to life. Because the power of the purse and the power of the sword make all else possible. There are many details that must be worked out that are not listed in this article. But this article was not written to form a new government. It was written to get you thinking about constitutions and how they directly affect YOU.

Thomas Jefferson’s shining jewel, the Declaration of Independence, states that when a government shows a long train of abuses meant to reduce the people under absolute despotism, it is the people’s right and duty to throw off such government and provide new guards for their future security. The Free Republic of North America could be that new guard that secures the future of a new nation.

FRONA. A new model for governance on the American continent. An idea whose time is come.

Let’s get this puppy started! Oops, gotta be careful. If Obama sees this, he might the idea to get some dogburgers delivered from some oriental restaurant in DC.

The Nation I: Mittens Romney won all four primaries last Tuesday. Big F***ing deal. Remember that you are going to vote for the lesser of two evils in November. And shame on you if you vote at all. If your vote, you are part of the problem, not part of the solution.

The Nation II: In our “Delusional Sociopath” Department, we gladly announce that Newt Gingrich has pulled out of the race. He probably will expect a Cabinet appointment or ambassadorship. I hope Romney makes Newt the Ambassador to BumfuckEgyptistan; or South Sudan, which is in a civil war.

The Nation III: Because the only thing that matters in the Mainstream Media is the Presidential race, let’s talk about who will be Mittens’ VP choice. There is lots of talk about Senator Marco Rubio of Florida. Small problem. Both of Rubio’s parents were born in Cuba. According to the oft-ignored old Constitution, “Natural Born Citizen does not mean just born on American soil. One must also be born of parents who were born on American soil. But why should that stop the Republicans? Sure as hell didn’t stop Barry Soetoro aka Barack Obama.

International I: Spain has made a move toward totalitarianism, and I promise you that the eyes of other nations are on this move. This week, the Madrid government banned cash transactions over $2,500 Euros between anybody, individuals or businesses. This is a blatant destruction of individual rights. They SAY that the move is aimed to combat black market activities. But I’m throwing the bullshit flag on Spain. This is about one thing…making sure that the Spanish government gets all the tax revenue it can collect. But in a wider sense, the order sets the stage for the cashless world system that all the governments would like to see…complete control of every individual. The funniest thing is that in my opinion, this will make the black market more vibrant, not less. The Black Market always figures out a way to avoid and evade the taxman.

International II: In the French primary election, President Nicolas Sarkozy came in second to socialist Francois Hollande. The French people don’t seem to want a national government that only spends what it takes in. They don’t want the austerity measures that are required for the French government to continue. France wants bread and circuses. Soon they will have neither.

International III: In March, Russia and Mexico each bought nearly $1 Billion in gold bullion. Mexico bought 16.8 TONS of gold, valued at $906.4 Million, and Russia bought 16.5 tons. The governments of Russia and Mexico understand very clearly, what is about to happen to the US Dollar. And don’t forget that China is likely the largest gold producer in the world, since they don’t release their mining figures. Speak Mandarin yet?

Business: Mad Cow Disease has been discovered in a cow in California. One dairy cow was found to have bovine spongiform encephalopathy, (BSE), otherwise known as Mad Cow disease. Seem a company was picking up dead cows for rendering, which means they cut up animals, boil the meat off the bones and use nearly every part of the animal for something, including cow feed. Yes friends, cows are fed cow by-products. As a matter of course, this company randomly tests for BSE. And the first test came back negative. Why they tested a second time, I don’t know. But they found the disease in this one cow. If you ever want to know what happens to cattle in the American beef industry just Google the words “cattle cruelty” and watch some of the videos there. You’ll think twice about your next Whopper. In today’s America, only grass-fed, free-range, drug-free organic beef is safe to eat. Remember, the USDA regulates the food industry, and they lie all the time, just like the rest of the Federal Government. If only random testing occurs, you know that other diseased cows are getting through without being discovered. And what doctor or hospital would want to reveal that Mad Cow disease killed someone? The political pressure to hide it to protect the Beef Industry would be enormous.

But here’s tonight’s commercial message. Here are the most important questions I could ask you: Are you living the dream? Do you spend as much time with the people you love as you want to? Are you living in the home of your dreams? Are you living in the spot in the world that you dream of? Do you drive the car of your dreams? Do you have a dream of helping others in some charity that remains unfulfilled? And let’s talk about where we spend a huge chunk of our time…at work. Are you working at the job of your dreams? Are you making the kind of money you always dreamed of earning? Were you able to answer “YES” to any of those questions? Most people I know are not living the dream…whatever that phrase means to THEM. I can’t tell you what YOUR dream is. But if you could not answer “YES”, how are you planning to make your dreams come true? There is a racing analogy that works well here: You must have the right vehicle but you must be the right driver. Think about it. If you have a NASCAR or Formula One car, and you’re the driver, you’ll probably get yourself killed in a race. And if you take the best NASCAR or Formula One driver and put him in a Volkswagen Beetle, he has no chance of winning. To win and make your dreams come true, you must be the right driver in the right vehicle. Here is another important question: How important ARE your dreams to you? Do you have a burning desire to make them come true…or do you just enjoy fantasizing about what it would be like to live the dream? Most of the people I spend time with are in the first category. They are working hard to make their dreams come true. Even if you have the right vehicle and you don’t think you’re the right driver, cheer up!! You can Learn to be a great driver…the driver of your dreams! If you’d like to learn more about making your dreams come true, and whether or not my energy business could be the right vehicle for you, send me an email at russlongcore@gmail.com. We can talk about it possibly design a plan to make your dreams come true!

Economy I: The number of actual new unemployment claims under state programs, unadjusted, totaled 366,743 in the week ending April 21, a decrease of 3,484 from the previous week. Yet, the Labor Department reported 388,000 new jobless claims last week. Folks, think about this. Every week for almost two years, a group of people the size of Oakland, California or Omaha, Nebraska get laid off. For TWO YEARS. That is 100 weeks of Omaha-sized layoffs. Recovery, my ass. Every time you see a news story that even hints at recovery, you should throw the bullshit flag at your TV.

Sports: NBA Player Ron Artest, who changed his name to Metta World Peace, had a bad case of stupid while his Lakers were playing the OKC Thunder last Sunday. Mr. Peace threw an elbow that hit Thunder player James Harden right behind his left ear, sending him to the floor with a concussion. Candyass NBA Commissioner David Stern only suspended Metta for seven games. What a disgrace Stern is. The Peaceman should be fined a month’s salary and suspended for the remainder of the season. That would send a message. But the fans like NBA Thugball, just like they like NHL Hockey. So the thuggery will continue.

Entertainment: Donald Trump’s Miss Universe Pageant has a dude competing this year with all the girls. Canada’s contestant (Canada??) is 23-year-old Jenna Talackova, who may look like a girl, but still has the XY chromosomes the rest of us guys have. It was only four years ago that he had a dick-ectomy. Have you seen this guy? He’s totally hot…no Adam’s apple issues, no five o’clock shadow, no deep voice, great set of hooters. No RuPaul action here. Actually looks a lot like Lisa Kudrow of the old Friends sitcom. Wait a minute! I hear some of you clucking your tongues because I think he’s real pretty. But my wife says that I’m just a lesbian trapped in a man’s body. After all, I like to do the same stuff lesbians do, except I do not need a strap-on. Makes sense to me…

Dump DC: Six Letters That Can Change History.

Copyright 2012: Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

(Editor’s Note: Do you have a “Plan B” for your life? What I mean is another stream of income to supplant or even replace your present income source. With America sliding into depression and massive layoffs, what will you do if your present situation changes? Multiple streams of income are best, and give you peace of mind. People who are employees are getting bled dry through taxation. The IRS tax code is written to benefit those who own businesses. There are hundreds of tax deductions and tax credits for businesses that are not available for wage-earners. Go to: MasterpieceEnergy.com to learn more about a nearly recession-proof business YOU can own.)

Money is one of the biggest ways that we lose privacy. We must report our income and where it comes from for tax purposes. Our banking records are monitored and our identities vigorously identified. Employees and employers must reveal vast amounts of information to state and federal labor regulators and tax collectors.

Whenever information is disclosed, even if it is to bureaucrats, there is a huge risk of abuse, accidental disclosure and fraud. Plus, the employee-employer relationship has become a cash cow for governments. Employees and employers are low hanging fruit for taxes, fees and regulations because they are easy to monitor, record, control and collect from. Both employers and employees must share a piece of their economic pie with state and federal government officials, increasing the costs to businesses and lowering the benefit received by employees. Governments impose these costs and regulations to take care of employees and employers, whether they want to be taken care of or not.

There is a way for both workers and businesses to free themselves of many of these burdens, reduce costs, keep more money and protect their privacy. Becoming an independent contractor instead of being an employee, or hiring independent contractors instead of employees, does all of that and reduces the amount of regulation that must be complied with, reduces legal risks, and can reduce taxes for both. This means there are more resources to share between workers and firms.

Employees Suffer

Even though most of government regulation claims to protect employees, it has had the opposite effect. The marketplace changes much faster than government regulation. Government regulation is designed for a business world that existed 50 years ago. There is no way that regulation by a slow moving, democratic government that has to make weekend deals just to keep from being shut down can keep pace with a 21st century information age economy.

Healthcare has been designed around a system where employees work at the same company for most of their life. Today, the average worker will change jobs many times in their lifetime. Minimum wage and overtime pay was formulated when there was no competition from overseas labor. Even the way that companies account for and fund their benefits and pensions makes them extremely expensive for employees with diminishing value. One of the worst parts of all is that employees have little control over the taxes they pay.
Employees Have Little Control Over Their Own Life

There is no doubt that some of these protections benefited employees overall at one time. Some may even be helpful today. But an employee has no choice whether they want to participate in these systems, even if they could get the same benefits elsewhere for less. Employees have no control over their economic life.

Control over your own economic life is valuable, not only in terms of mental health and a feeling of self worth and independence, but also economically. Something as simple as being able to control more of the taxes you pay can have a dramatic impact on your financial well being.

This entire strategy is premised on a very important issue. To take advantage of these Huge tax benefits you cannot be a regular employee. You can take advantage of every one of these tax benefits as an independent contractor. A regular employee would pay taxes on close to the full amount of that $150,000 of income.

Employers Pay Extremely High Labor Costs

Employees cost their employers a lot more than their hourly wage. Unemployment tax, ERISA, and Medicare costs alone are 15% of the total salary paid to employees. Employers also pay an average of $7,500 per employee in health insurance every year, something required when the firm has 50 or more employees.

High Administrative Costs And Risks For Employers

On top of these direct costs, there are numerous other regulations that must be complied with, even if it does not make economic sense. Employers are required to give family leave under certain circumstances, have detailed record keeping requirements, and many other things that raise the cost of having employees and decrease profitability, without actually paying workers more.

Employers are also exposed to lots of litigation risk. Whether it is an employee discrimination suit, failing to comply with regulation, harassment, overtime, even a conscientious employer can find themselves in an expensive, often frivolous, lawsuit. A lot of these costs and regulations are preventing businesses from hiring employees.

Independent Contractors Reduce Labor Costs And Increase Productivity

Businesses can still get the work done that they need to get done without incurring these huge costs by hiring independent contractors instead of employees. Independent contractors are also easier to train, more productive and provide a lot of flexibility in changing economic times.

IRS Scrutiny

These economic benefits have attracted a lot of workers and firms to try independent contractors instead of employees, but beware. The IRS and the Department of Labor have begun cracking down on those who do it wrong. Doing it wrong could mean having to pay back taxes and interest owed, or even paying penalties or overtime.

Follow The IRS 20 Factor Test

There is a way to do it right. The IRS has a 20 factor test that they use to determine if the worker is an employee or an independent contractor. This list is very fact specific and the weight given to every factor will depend on what other factors may reveal.

Independent Contractor Should Control Their Own Work

One of the most important things to consider is the amount of control that the firm has over the worker. An independent contractor will have control over their schedule and how they perform the work. The firm will control what they want the outcome or finished product to be. Suggestions are permitted but they must be suggestions. This is becoming much easier with the ability to work remotely over the internet.

Independent Contractor Can Do Work For Others At The Same Time

Another important factor is that the independent contractor is free to do work for others as well. This can be a critical factor that the IRS or Department of Labor look at. It is much better if the independent contractor is doing jobs for other clients, or at least advertising in places like Craigslist for other clients.

Independent Contracting Is A Win-Win

Independent contractors allow workers and firms to share more money between themselves. The government is entitled to much less of the money that flows from firms to independent contractors than employers and employees. Businesses become more profitable, individuals keep more money and everyone increases their privacy. Independent contractors can also have more control over their tax domicile, a more advanced but much more powerful tax saving strategy.

Conclusion

This is only scratching the surface of how to properly take advantage of this powerful strategy. Secrets of Independent Contractors, from HowToVanish.com is a simple and complete guide to help businesses and workers properly structure their relationship so they can take advantage of the huge tax savings.

Legendary comedian Jack Benny, known to be a skinflint, was met one night by an armed thug.

“Your money or your life,” said the thug.

Benny was silent. The thug said, “Well, what’s it going to be?”

I’m thinking…I’m thinking!” was Benny’s reply.

Taxation is theft, ladies and gentlemen. If there is the slightest hint of compulsion in taxation, it’s theft. Your money is taken from you under the threat of either loss of freedom of loss of life.

Taxation in the USA is a protection racket. If you pay your taxes willingly and meekly, the government is likely to leave you alone for the remainder of that year. But refuse to be taxed and reject government protection and you will meet with a fate worse than meeting with an armed robber.

Paying taxes is akin to meeting an armed robber…but government is at your door, not in some dark alley. They work in similar ways, but I’m here to tell you that, given the choice between an armed robber and government, always choose the armed robber.

To offer proof, let’s look at some ways that an armed robbery is superior to government taxation.

An armed robbery might occur while you are in your car, your home, a city street or country lane. He might brandish some weapon and relieve you of your wallet, purse or other valuables. He might steal your car. He might even shoot you if you resist, even unto your death. But at least your encounter with an armed robber is customarily between individuals of a small number. Then, he usually goes on his way to seek out his next victim, or maybe to spend the spoils of his robbery.

The government does not act in such a manner. Government robs you in a far more despicable and cruel way. If you are an employee, government reaches into the coffers of your employer and collects the money it wants even before you receive it (can you imagine an armed robber showing up at the payroll office of your employer and demanding a portion of your wages?). If you are self employed, government wants their “cut” monthly. If you own property, you’ll either pay your tax or government will confiscate your property and sell it for the tax they think they are due.

The robber understands the crime he commits, its danger and the possible consequences of his own act. He doesn’t assert a position that he has some prior claim to your money, or that he is going to use your money to benefit you. He is simply an armed robber and nothing more. He hasn’t offered a protection plan in exchange for the money he stole from you against your will. Once the robber takes your money, he usually leaves you alone. He does not follow you wherever you go, proclaiming that he is your master because of the protection he provides to you with the money he stole from you. He does not require your obeisance, homage or loyalty into the future…only your money today. He does not consider you to be his slave or servant. He does not force you to do this thing, or prohibit you from doing that. The robber does not usually come back to you over and over for more money. And if you dispute his authority, the robber does not label you a traitor and his enemy. He does not have other of his armed minions arrest you, charge you with felonies, throw you into his jails or kill you if you resist. In addition to robbing you, the robber does not try to convince you of his good intentions, or try to make you into his slave. A robber is too honorable to perpetrate these heinous acts on individuals.

No, the armed robber cannot be compared in any way to the thieves and murderers known as the “government.”

Government robbers and murderers, unlike the armed robber, do not accept responsibility for their acts as individuals. They hide within the anonymity of the government. They choose certain of their minions, like those of the Internal Robbery Service (IRS) to commit the robberies on the government’s behalf. They bestow law enforcement authority and weapons on these toadies and give them their orders.

In essence and in practice they send forth “swarms of officers to harass the people and eat out their substance” (from the Declaration of Independence). They assert that the government needs the people’s money for its endeavors. If an individual resists, telling the government that he never contracted with the government for its protection or its endeavors, they will inform the individual that he will pay and be protected whether he likes it or not. If he further refuses to comply with their demands, the toadie thugs will at least seize enough of the citizen’s property to sell in settlement of the government’s demands. And that’s just this year’s take.

If the citizen still resists and defends his property, and in that effort, kills any minons, the citizen will either be captured or killed himself. If captured, he will be tried and imprisoned or put to death. Should the citizen enlist the efforts of others of like mind to resist the demands of the government, they will all be labeled “tax cheats, kooks, rebels, traitors,” or any other pejorative moniker that government can use to besmirch their names. But government would also enlist greater forces to put down this armed rebellion, even if hundreds of thousands of rebels took up arms against the government. But happily, one day the tax rebellion could reach a critical mass that was greater than the government’s ability to crush.

And all of this action and consequence flows from one person just wanting to be left alone and resisting aggression from others. The citizen commits no force or fraud upon others…he only seeks to live his life as he sees fit.

All government has the potential for tyranny. The way to minimize tyranny is to create governments with very limited powers and strictly police their actions.

That is one of the reasons I’ve written in past articles about creating a new nation in the model of a corporation, and using only sales tax as the sole method of taxation. The corporate model of government creates a legal written contract between the citizens for the operation of their country. And, as sales tax is the least oppressive and most voluntary form of taxation, it is the best solution to raise revenue to pay for the new nation’s functions.

One of the greatest benefits that can come from secession is predictability. No one ever talks about this, and even I haven’t mentioned it before. But predictability will be a welcome recompense to the state that secedes and designs its new government correctly.

Eventually, the American government will collapse, either from (a) the rejection of the dollar as world reserve currency, or (b) the collapse of the world bond market, or (c) hyperinflation. Either of the first two would be sudden and catastrophic…the third would be drawn out and catastrophic. The time frame of the Federal Government collapse is not predictable, but the surety of the event is.

The collapse will bring economic chaos, riots and burned cities, and rampant crime. Starvation and disease will kill millions across America…most severe in the places where populations are most dense. Shortly thereafter, pro-secession citizens, survivalists, and contrite politicians will finally begin to see the practicality and efficacy of secession. At that point it will be obvious to all that Washington has no answers, and that the regulation, taxation and overt fascism that emanated from DC actually CAUSED the grand America experiment to end after only 230-plus years. But do not blame Washington entirely…DC is a mirror held up to show the reflection of a nation that STILL wants something for nothing.

States will secede from the Union and become brand new nations. I predict that the first to secede will be Texas. After that, it’s anyone’s guess.

Those responsible for the New Texas nation will likely call a constitutional convention and rewrite the Texas Constitution to better serve a sovereign nation in the early part of the 21st century. And those doing the rewriting should be made mindful of the importance of predictability in their new nation.

The most crucial predictability will be found in the method of taxation chosen by the new nation and the type of money the new nation creates.

Since 2008, when the Bush bailouts and Federal stimulus packages began occurring, the American economy has been in a severe recession. Washington has been writing laws and spending money wildly, writhing like a monster in a fire. America’s business class has noticed, and they see a Federal Government that will enact a law or a tax today that may be repealed or superceded tomorrow. A business cannot afford to ignore the unpredictability of business regulation or the business tax code. They see Washington react, not act. And Washington’s reactions are ALWAYS wrong, because the reactions are founded in a philosophy that government is the answer. In a situation in which a business cannot reasonably plan for the future, the business will exhibit hesitancy and reticence in all it does.

Think about it. If you own a business, and you don’t know how the Obama Health Care law or a new EPA or OSHA regulation is going to affect your business, would you take a chance on hiring new people when there is so much unknown that could ruin your business? If you price your product competitively, but the inflation rate increases from 5% annually to 5% a month…how do you stay in business? How do you protect your profit margin? How do you make plans for a month from now, much less make plans for 12 months from now?

It is no different for individuals. Unpredictability causes chaos. Wages have lagged behind inflation for 40 years. All of us that saved money for retirement have seen inflation eat out our substance, and have watched the markets tumble, drastically shrinking our retirement money. It is impossible for the average person to save and invest enough money in this present uncertain economy to have a comfortable retirement…with or without Social Security. But the same question about inflation affects the individual; how do you budget your income and expenses when inflation jumps from 5% annually to 5% a month…or 5% a week?

The most profound source of future predictability will be found in a monetary system built around gold and silver. Why? Because gold/silver money prevents government from spending more then they take in. Period. “Hard currency” eliminates inflation. Do you understand what I’m saying here? All of us that are 80 years old and younger have lived our entire lives under a government monetary system that includes inflation. Inflation has been as familiar to us as oxygen. We have lived our lives hearing about the inflation rate…some years high, some years low…but never nonexistent. We have never experienced a money that does not lose value over time. When we consider a return on an investment, we always subtract the inflation rate from the gross return to find the net return. In a nation without inflation, the gross return IS the return on investment.

What would you do if you knew that the money you saved this year would have the same value in 20 – 30 – 40 years? Answer…the amount you had to save for retirement would be considerably less than in the American economy now. For the average citizen, that would mean more cash available today that is not being deferred until “tomorrow.” More cash today means a higher standard of living. Anybody out there against a higher standard of living?

Want to know the REAL reason the world stock markets are fluctuating wildly? There is one reason. The world reserve currency is the US Dollar, and its value is entirely unpredictable.

The next big source of predictability is taxation. A state that becomes a new nation must stop thinking like the serf state it was, and begin to think thoughts of independence and sovereignty. I have written extensively about taxation, and I am promoting the national sales tax as THE ONLY SOURCE of tax revenue for the new nation. Set the tax rate in the constitution at 10% on all transactions. No more property taxes, ad valorem taxes, tariffs, excise taxes…no other taxes of any kind. No subsidies, no exemptions for ANYONE. The tax revenue will flow into the nation’s treasury, and the new nation can pay for ALL government programs… city, county, township, police, fire, militia, courts, etc… the national treasury pays for it all. Of course, this would also require the new nation to drastically slash the services it provided in order to live within its means.

Finally, as the new nation crafts new laws, it should keep the principle of predictability in mind. When individuals and businesses can plan for the future knowing that the money will not lose value, that taxation is not going to increase, or that regulations are not going to restrict their individual liberty and property rights, they will enjoy a predictability that none of us living have ever known or experienced. Don’t ever underestimate the importance that predictability could have in your life.

Terrific short video about how bonds work. Show this to your kids…after you watch it yourself.

When you buy a government bond, you are loaning money to the government. Are you satisfied with what the government is doing with the money you lend them? Are you culpable for the criminal acts of the government when you lend them money?

Taxation is slavery. Remember that the national sales tax is the least hideous form of taxation. The Fair Tax is one of the most hideous, and people think it is good. Read HERE about the Fair Tax.

As the most recent “silly season” of a presidential election is beginning, the FairTax idea is being bandied about once again. The FairTax is a concept promoted in “The FairTax Book” by talk show host Neal Boortz and Republican Congressman John Linder. It is basically a national retail sales tax that is meant to replace ALL Federal taxation. Boortz’s idea overlays a national sales tax on a 50-state America. But it has some dangerous and ill-conceived downsides.

First, and most important to me…is that the FairTax seeks to solve the problem of taxation for the United States of America. We here at DumpDC do not care about the future of the USA. We seek to bring our influence to bear…such as it is…to encourage states to secede from the Union and become new nations. We’re all about secession here at DumpDC. So we are trying to convince a big dysfunctional nation that smaller is better, and that individual nations are better than the confederacy of serf states presently comprising the USA.

We believe that a national sales tax, unencumbered by tax loopholes, is the very best method of collecting taxes to operate any government. But many features of the FairTax don’t make any sense for a new nation. I wrote about taxation in a New Texas HERE.

Next…the FairTax tries to be “revenue neutral.” That means that it seeks to collect roughly the same amount of money in taxation that the Federal Government presently plunders from Americans. But Washington is a Category 5 spending hurricane, destroying the nation with taxation and inflation while it continues to borrow trillions so it can spend even more. For the FairTax to be revenue neutral is to reward the current criminal and unconstitutional behavior of the Congress and whatever President occupies the White House.

In a seceded state…a new nation…there will be no Social Security and Medicare. There will be no gaggle of three-letter bureaucracies that gobble up tax money. If the new nation creates their national money based upon gold and silver, there will be no central bank. I contend that the national sales tax should be set in the new nation’s Constitution at 10%, and alterable only by a Constitutional amendment.

Next…in the first edition of the FairTax Book released in 2005, America has not yet begun the runaway economic train to oblivion. So Boortz makes a lot of statements that are no longer true now that it’s six years later. For example, Boortz talks about how the FairTax will make America so attractive that corporations who have moved operations offshore will flock back to the USA to take advantage of the business-friendly taxation of the FairTax. But in 2005, Congress had not completed the bailout of the banks, the auto makers, and some insurance companies. Congress and the President had not borrowed trillions of dollars over and above taxation. No stimulus packages had been enacted. And, the US Dollar was not in imminent danger of collapse back then. Besides, big business did not move their operations offshore just because of taxation. Labor costs, the costs of crushing regulations, and even some raw materials costs, are drastically reduced or eliminated outside the USA. So I contend that most US businesses with offshore operations would stay right there…offshore.

The FairTax as proposed will be assessed as a national sales tax at 23% on all goods and services sold at the retail level. The sales of used or formerly owned goods would not be subject to the sales tax. So sales transactions between individuals would not be subject to the FairTax.

Chapter 9: The FairTax ‘Prebate’…The Key To Fairness

Boortz takes the first six chapters building a case against the tax loopholes that the Washington special interest lobbies have successfully gained over the years. He tells us how outrageous it is that certain groups get tax exemptions at the expense of others. But then Boortz creates his own tax exempt group for the FairTax, and then goes one better. The FairTax places ALL Americans on the government dole. That this idea came from a purported Libertarian should boggle your mind. At the very least, it should bring into severe question the Libertarianism of the authors.

The FairTax is based on the premises that “the poor” should not have to pay the Federal tax, and that none of us should have to pay the FairTax for the necessities of life. Boortz/Linder propose what they call a “prebate”…a monthly check issued in Washington, that allegedly reimburses “every family for the sales tax that the family will pay on all spending up to the Federal Poverty Level…” Presently in 2011, the Federal Poverty Level is $22,350.00 for a family of four. That’s American poverty for you…an inflation-distorted income level where most families have refrigerators, microwaves, multiple TVs, cell phones, computers and an automobile.

But I ask you…why should anyone be exempt from paying a national sales tax? Even if the poor are on government assistance right now, they pay state sales tax on most purchases. They drive the same roads, get the same fire and police protection, and receive many of the other benefits of civilized society that the rest of us that DO pay taxes also receive. In the FairTax book, page 88, Boortz says, “For them, it’s all benefit and no burden.” Further, many of the poor receive thousands of dollars in government assistance that NONE of the rest of us enjoy, simply because they are lumped into the group known as “the poor.”

I contend that in a new nation that created a national sales tax as its only revenue source, no human being would be exempt from taxation. Little Johnny buying his bubble gum would pay, just like the richest person in the nation. No favorites. No class warfare. No income tax. No other forms of taxation. Just a national sales tax.

Chapter 10: Underground and Offshore Economy…Taxed At Last!

Before we begin looking at this chapter, just contemplate that chapter title for a moment. “Taxed At Last??” Since when does a Libertarian have a goal to tax more people and gain more revenue for DC? Isn’t the essence of individual liberty and property rights found in avoiding taxation to the limits of the law?

This chapter proves that the ridiculous IRS code has an unintended consequence, which is tax evasion. Of course it does. There will ALWAYS be an underground economy…a “black market”…when there is taxation enforced or when there is some prohibition enacted against goods or services for which there is a public demand. In like manner, the IRS code has created an offshore economy as Congress has enacted tax loophole legislation. But Boortz goes a little crazy on page 96 when he says, “But there’s an even larger tax-avoidance drag on our economy: those who avoid taxes absolutely legally.”

A drag on our economy? By avoiding taxes legally? Neal, whose side are you on?

Even though the underground economy does not pay income taxes, it pays sales taxes when it spends its money. So, with liberty in mind, we should be much more concerned with minimizing government taxation and maximizing individual liberty and property rights.

Then, on page 100, Neal steps over the line of reason. He equates laundering money from criminal activity with legally keeping an offshore bank account. Quote: “If a criminal stashes his ill-gotten gains in one of these (Offshore Financial Centers), all he needs is a simple debit card issued by that offshore bank to access his funds…it’s estimated that 1-2 million Americans are using such accounts.”

Then, on page 104, Boortz says something that makes me think that he does not understand basic economics. He states that trillions of dollars in American wealth sits offshore. Quote: “This is money that is not creating jobs and driving economic growth in our country…and would come flowing back home if the income tax…were replaced by the FairTax.”

But capital does not create jobs all on its own. And capital’s reason for existence is not to create jobs…it is to create profit for those holding the capital. Basic economics says that demand for a product or service motivates entrepreneurs to create those products and services to satisfy the demand. Jobs are the labor costs of any goods and services. Capital that creates goods or services without a demand wastes capital…like communism did in the Soviet Union. Demand comes first, Neal…not capital. And demand can be as simple as your stomach growling. Demand is destroyed by runaway government spending and inflation which plunders capital and evaporates its value. Get rid of runaway spending and inflation and people will once again have the discretionary income to satisfy their demands.

Chapter 12: The Opposition: Where Will It Come From?

Neal hauls out the bogeymen who will naysay his self-perceived brilliance. He talks about how Americans cheat on their taxes as a matter of course. But most Americans practice tax avoidance, not tax evasion. And under a 23% national sales tax, there will be a new wave of tax avoidance. But tax avoidance is not tax evasion. Evasion is fraudulent and illegal. Avoidance is intelligent money management. Boortz blurs the line between the two extremes.

I thought Neal Boortz was a Libertarian. He says he is a Libertarian. Libertarians embrace smaller government. But what is there about creating a taxation system that sends every American a monthly check that sounds even remotely Libertarian?

The answer? There is nothing about the FairTax that is either sensible or Libertarian. It is yet another big-government shell game, designed to perpetuate the out-of-control spending of the Congress at present levels. Boortz says he doesn’t MEAN to do that, but it still happens nonetheless. Once again, the law of unintended consequences wins.

The FairTax also exposes a certain political naiveté of Boortz. Who really believes that the FairTax would never exceed 23%? Who believes that the FairTax would ever be less than 23%? Who believes that Congress would EVER pass the FairTax into law? Who believes that the FairTax would have any effect on Congressional spending?

So here’s your choice, America. Choose between a 23% Federal sales tax added on top of whatever sales taxes you pay on the state and local level…which could EASILY total 30% or more, and 10% taxation in a state that becomes a nation by secession.

30% or 10%. Hhhmmmm….

It’s the biggest no-brainer in the history of earth.

Here’s the money quote for today: Secession will happen LONG before the FairTax happens. Even if all of us do nothing to promote our ideas, reality is going to cause the United States government, the US Dollar and the America economy to collapse. Which do you think will arise from the ashes of the USA…secession or the FairTax?